SGX:K03

Stock Analysis Report

Executive Summary

Khong Guan Limited, an investment holding company, trades in wheat flour and other edible products in Singapore and Malaysia.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Khong Guan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: K03 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

K03

-4.2%

SG Consumer Retailing

-1.4%

SG Market


1 Year Return

-11.6%

K03

-28.3%

SG Consumer Retailing

0.8%

SG Market

Return vs Industry: K03 exceeded the SG Consumer Retailing industry which returned -25.8% over the past year.

Return vs Market: K03 underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

K03IndustryMarket
7 Day0%-4.2%-1.4%
30 Day-5.4%-2.4%0.3%
90 Dayn/a-1.2%1.8%
1 Year-10.7%-11.6%-26.0%-28.3%4.9%0.8%
3 Year-9.4%-12.9%-15.9%-22.9%13.7%1.6%
5 Year-14.0%-19.7%-14.1%-25.5%10.8%-7.7%

Price Volatility Vs. Market

How volatile is Khong Guan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Khong Guan undervalued compared to its fair value and its price relative to the market?

0.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: K03 (SGD1.76) is trading above our estimate of fair value (SGD0.35)

Significantly Below Fair Value: K03 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: K03 is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: K03 is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate K03's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: K03 is good value based on its PB Ratio (0.7x) compared to the SG Consumer Retailing industry average (0.8x).


Next Steps

Future Growth

How is Khong Guan forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.3%

Forecasted Consumer Retailing industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Khong Guan has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Khong Guan performed over the past 5 years?

-24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K03 is currently unprofitable.

Growing Profit Margin: K03 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: K03 is unprofitable, and losses have increased over the past 5 years at a rate of -24% per year.

Accelerating Growth: Unable to compare K03's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: K03 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (3.4%).


Return on Equity

High ROE: K03 has a negative Return on Equity (-0.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Khong Guan's financial position?


Financial Position Analysis

Short Term Liabilities: K03's short term assets (SGD31.2M) exceed its short term liabilities (SGD6.8M).

Long Term Liabilities: K03's short term assets (SGD31.2M) exceed its long term liabilities (SGD377.9K).


Debt to Equity History and Analysis

Debt Level: K03 is debt free.

Reducing Debt: K03 has no debt compared to 5 years ago when its debt to equity ratio was 0.04%.

Debt Coverage: K03 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: K03 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: K03 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if K03's debt is covered by short term assets.


Next Steps

Dividend

What is Khong Guan's current dividend yield, its reliability and sustainability?

1.14%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.5%markettop25%5.5%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: K03's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: K03's dividend (1.14%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: K03 is not paying a notable dividend for the SG market, therefore no need to check if payments are stable.

Growing Dividend: K03 is not paying a notable dividend for the SG market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: K03 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of K03's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of Khong Guan's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average board tenure


CEO

Soo Eng Chew (71yo)

13yrs

Tenure

S$510,717

Compensation

Mr. Chew Soo Eng is Managing Director at Khong Guan Limited since January 11, 2007 and its Director since March 3, 2006. He has been the Managing Director at Khong Guan Flour Milling Limited since January  ...


CEO Compensation Analysis

Compensation vs Market: Soo Eng's total compensation ($USD379.17K) is about average for companies of similar size in the SG market ($USD345.53K).

Compensation vs Earnings: Soo Eng's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

5.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: K03's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Eng Chuan Koe

    Company Secretary

    • Soo Eng Chew (71yo)

      MD & Executive Director

      • Tenure: 13yrs
      • Compensation: S$510.72k
    • Soo Lin Chew (70yo)

      Executive Chairman of the Board

      • Tenure: 12.4yrs
      • Compensation: S$336.26k
    • Daniel Chew (44yo)

      Executive Director

      • Tenure: 3.9yrs
      • Compensation: S$184.99k

    Board Members

    • Soo Eng Chew (71yo)

      MD & Executive Director

      • Tenure: 13yrs
      • Compensation: S$510.72k
    • Soo Lin Chew (70yo)

      Executive Chairman of the Board

      • Tenure: 12.4yrs
      • Compensation: S$336.26k
    • Willie Tay

      Lead Independent Director

      • Tenure: 6yrs
      • Compensation: S$40.00k
    • Daniel Chew (44yo)

      Executive Director

      • Tenure: 3.9yrs
      • Compensation: S$184.99k
    • Jih-Shian Yeo

      Independent Non-Executive Director

      • Tenure: 1.9yrs
      • Compensation: S$18.00k
    • Alex Tan (51yo)

      Independent Director

      • Tenure: 0.8yrs
      • Compensation: S$5.00k

    Company Information

    Khong Guan Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Khong Guan Limited
    • Ticker: K03
    • Exchange: SGX
    • Founded: 1960
    • Industry: Food Distributors
    • Sector: Consumer Retailing
    • Market Cap: S$45.172m
    • Shares outstanding: 25.81m
    • Website: https://www.khongguanlimited.com

    Location

    • Khong Guan Limited
    • No. 03-01 Khong Guan Building
    • 2 MacTaggart Road
    • Singapore
    • 368078
    • Singapore

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    K03SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992

    Biography

    Khong Guan Limited, an investment holding company, trades in wheat flour and other edible products in Singapore and Malaysia. It is involved in the wholesale of wheat flour, general goods, biscuits, and other consumer goods. The company also trades in shares listed primarily in Singapore and Malaysia. It also exports its products to approximately 30 countries worldwide. The company was formerly known as Khong Guan Flour Milling Limited and changed its name to Khong Guan Limited in November 2016. Khong Guan Limited was incorporated in 1960 and is headquartered in Singapore. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 12:38
    End of Day Share Price2020/01/23 00:00
    Earnings2019/07/31
    Annual Earnings2019/07/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.